Hot Chili Granted Access to Maritime Concession Land for Costa Fuego
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Hot Chili Granted Access to Maritime Concession
Land for Costa Fuego
Hot Chili Limited (ASX: HCH) (TSXV:HCH) (OTCQX: HHLKF) (“Hot Chili” or “Company”) is pleased to
announce another important step toward infrastructure consolidation for the Company’s low-altitude,
Costa Fuego senior copper development in Chile.
The Chilean Naval Authority have granted Hot Chili access to the physical land of its Maritime Concession for
extraction of sea water just 60 kilometres from the proposed location of Costa Fuego’s central processing
facilities.
Access to the coastal land surrounding the Maritime Concession provides yet another government approval in
the Company’s regulatory process to develop Costa Fuego.
Hot Chili was awarded its Maritime Concession in late 2020 (as announced to ASX on 7 th December 2020),
which provided critical water extraction rights for Costa Fuego, securing sufficient water supply for a new large-
scale conventional copper-gold operation.
Water extraction and land access rights for sea water supply and processing differentiate Costa Fuego as a
leading new “green” copper development, ensuring no ground water will be used and no de-salination plant is
required. This is in addition to other green credentials the project boasts, including existing infrastructure
footprint, electrical connection, proximity to the largest solar projects in Chile and clean (arsenic-free)
concentrate.
The Directors would like to thank the Chilean Maritime Authorities for the ir efficient legal proceedings to
approve Hot Chili´s maritime application (water extraction right and associated land access rights) and
supporting the development of a new large-scale copper hub for the Vallenar region of Chile.
Announcement
Wednesday 7th December 2022
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This announcement is authorised by the Board of Directors for release to ASX and TSX.
For more information please contact:
Christian Easterday
Managing Director – Hot Chili
Tel: +61 8 9315 9009
Email: [email protected]
Penelope Beattie
Company Secretary – Hot Chili
Tel: +61 8 9315 9009
Email: [email protected]
ASX Investor
Investor & Public Relations
(Australia)
Email: [email protected]
Harbor Access
Investor & Public Relations
(Canada)
Email: [email protected]
Email: [email protected]
or visit Hot Chili’s website at www.hotchili.net.au
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Figure 1. Location of new mining rights(AMSA) relating to Cortadera, Productora, San Antonio , Valentina and
nearby coastal range infrastructure of Hot Chili’s combined Costa Fuego copper-gold project, located 600km north
of Santiago in Chile..
* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm ×
Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery).
The Metal Prices applied in the CuEq calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. Metallurgical recovery averages for each
deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. The recovery and copper equivalent
formula for each deposit is:
Cortadera and San Antonio – Weighted recoveries of 82% Cu, 55% Au, 82% Mo and 37% Ag.
CuEq(%) = Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t)
Productora – Weighted recoveries of 84% Cu, 47% Au, 47% Mo and 0% Ag (not reported)
CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm)
Costa Fuego – Weighted recoveries of 83% Cu, 53% Au, 69% Mo and 23% Ag
CuEq(%) = Cu(%) + 0.52 x Au(g/t) + 0.00039 x Mo(ppm) + 0.0027 x Ag(g/t)
** Reported on a 100% Basis - combining Mineral Resource Estimates for the Cortadera, Productora and San Antonio deposits. Figures are rounded, reported to
appropriate significant figures, and reported in accordance with the JORC Code, CIM and NI 43 -101. Metal rounded to near est thousand, or if less, to the nearest
hundred.
Total Resource reported at +0.21% CuEq for open pit and +0.30% CuEq for underground.
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Qualifying Statements
Costa Fuego Combined Mineral Resource (Reported 31st March 2022)
Refer to ASX Announcement “Hot Chili Delivers Next Level of Growth” (31 st March 2022) for JORC Code Table 1 information related to the Costa Fuego JORC -compliant
Mineral Resource Estimate (MRE) by Competent Person Elizabeth Haren, constituting the MREs of Cortadera, Productora and San Antonio (which combine to form Costa
Fuego).
* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm ×
Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery).
The Metal Prices applied in the CuEq calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. Metal lurgical recovery averages for each
deposit consider Indica ted + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. The recovery and copper equivalent
formula for each deposit is:
Cortadera and San Antonio – Weighted recoveries of 82% Cu, 55% Au, 82% Mo and 37% Ag.
CuEq(%) = Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t)
Productora – Weighted recoveries of 84% Cu, 47% Au, 47% Mo and 0% Ag (not reported)
CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm)
Costa Fuego – Weighted recoveries of 83% Cu, 53% Au, 69% Mo and 23% Ag
CuEq(%) = Cu(%) + 0.52 x Au(g/t) + 0.00039 x Mo(ppm) + 0.0027 x Ag(g/t)
** Reported on a 100% Basis - combining Mineral Resource Estimates for the Cortadera, Productora and San Antonio deposits. Figures are rounded, reported to
appropriate significant figures, and reported in accordance with the JORC Code, CIM and NI 43-101. Metal rounded to nearest thousand, or if less, to the nearest hundred.
Total Resource reported at +0.21% CuEq for open pit and +0.30% CuEq for underground.
** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate
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Competent Person’s Statement- Exploration Results
Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee
of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient exper ience that is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as
defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve s’ (JORC Code). Mr
Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Competent Person’s Statement- Costa Fuego Mineral Resources
The information in this report that relates to Mineral Resources for Cortadera, Productora and San Antonio which constitute the combined Costa Fuego
Project is based on information compiled by Ms Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of The Australasian
Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Ms Haren is a full -time employee of Haren Consulting
Pty Ltd and an independent consultant to Hot Chili. Ms Haren has sufficient experience, which is relevant to th e style of mineralisation and types of
deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Editio n of the ‘Australasian
Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Haren consents to the inclusion in the report of the matters based
on her information in the form and context in which it appears. For further information on the Costa Fuego Project, refer to the technical report titled
"Resource Report for t he Costa Fuego Technical Report", dated December 13, 2021, which is available for review under Hot Chili's profile at
www.sedar.com.
Reporting of Copper Equivalent
Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)
+ (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1%
per tonne × Cu_recovery). The Metal Prices applied in the CuEq calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20
USD/oz. Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine s ulphide flotation and
oxide leaching performance. The recovery and copper equivalent formula for each deposit is:
Cortadera and San Antonio – Weighted recoveries of 82% Cu, 55% Au, 82% Mo and 37% Ag.
CuEq(%) = Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t)
Productora – Weighted recoveries of 84% Cu, 47% Au, 47% Mo and 0% Ag (not reported)
CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm)
Costa Fuego – Weighted recoveries of 83% Cu, 53% Au, 69% Mo and 23% Ag
CuEq(%) = Cu(%) + 0.52 x Au(g/t) + 0.00039 x Mo(ppm) + 0.0027 x Ag(g/t)
Forward Looking Statements
This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or imp lied) as to the
accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing containe d in the Announcement is, or
may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby exclude s all warranties that
can be excluded by law. The Announcement contains material which is predictive i n nature and may be affected by inaccurate assumptions or by
known and unknown risks and uncertainties and may differ materially from results ultimately achieved.
The Announcement contains “forward -looking statements”. All statements other than those of h istorical facts included in the Announcement are
forward-looking statements including estimates of Mineral Resources. However, forward -looking statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ mate rially from future results expressed, projected or implied by such forward -looking
statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs
and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regula tion
and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect
events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as m ay be required under
applicable securities laws. All persons should consider seeking appropriate professiona l advice in reviewing the Announcement and all other
information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of
the Announcement nor any information contained in the An nouncement or subsequently communicated to any person in connection with the
Announcement is, or should be taken as, constituting the giving of investment advice to any person
Disclaimer
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responsibility for the adequacy or accuracy of this news relea